Financial Report Q1 2024
Highlights
- Strong operating revenues of USD 147.5 million.
- EBITDA was USD 96.1 million, compared to USD 141.4 million in Q1 2023. Adj. for non-recurring items, EBITDA was USD 96.3 million compared to USD 110.7 million in Q1 2023.
- Profit for the period was USD 76.5 million. Adj. for non-recurring items, the profit for the period was USD 76.7 million compared to USD 88.9 million in Q1 2023.
- Adj. EPS was USD 0.17 (Q1 2023: USD 0.20) and the Board has declared a quarterly recurring dividend of USD 0.13 per share.
- Average TCE was USD 27,452 per day in Q1 2024, compared to USD 30,989 in Q1 2023.
- Fleet utilization was 98.9%, up from 97.1% in Q1 2023.
- Subject to certain assumptions, the financial guidance for 2024 has been increased to operating revenues in the range of 475-490 million (previous: USD 435-470 million) and EBITDA in the range of USD 280-305 million (previous: USD 240-280 million).
- As at March 31, 2024, the Group’s fleet consisted of 56 vessels, with an aggregate capacity of approximately 126,035 TEU.
Commenting on MPCC’s results in the first quarter, Co-CEO and CFO Moritz Fuhrmann, said:
“MPCC delivered robust operational and financial performance in the first quarter. Our revenues were bolstered by high utilization, driven by the rescheduling of several dry-docks to the latter half of the year. We maintained a strong balance sheet, operating with low leverage of 13.2% and with net debt of negative USD 22.4 million at the end of the quarter, reflecting our commitment to maintaining financial strength and strong liquidity.
We also remain committed to providing strong shareholder returns. The Board has declared a recurring dividend of USD 0.13 per share for the first quarter, amounting to USD 57.7 million, bringing the year-to-date dividend yield to approximately 20%. Additionally, we ended the quarter with a charter backlog of USD 0.9 billion and contract coverage for 84% of open days remaining for 2024 and 47% for 2025, ensuring continued good earnings visibility.”
Reflecting on recent market trends and the future outlook, CEO Constantin Baack added:
“The shipping industry continues to be faced with geopolitical events, particularly the ongoing Red Sea Crisis and vessel attacks by the Houthi movement. These events have led carriers to reroute vessels around the Cape of Good Hope, disrupting supply-demand dynamics and resulting in significantly increased freight- and charter rates.
Over recent months, the market has firmed up considerably, with smaller vessels now being fixed on charters for 12 to 24 months or longer and increasingly on forward charter positions, driving an improved contract coverage and earnings visibility. Still, outlook remains uncertain due to the potential resolution of the Red Sea Crisis and the increased supply of new vessels in the larger segments, which could change the current supply-demand dynamics.
Our continued strong results highlight our resilience and agility amid a dynamic market landscape. We have maintained our financial strength and made further progress in our fleet renewal and optimization efforts. As we move forward, we remain committed to leveraging our strong financial foundation, operational excellence, and sustainable initiatives to seize emerging opportunities, drive growth, and maximize shareholder value.”
The above information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Q1 2024 Earnings Call:
Constantin Baack, CEO, and Moritz Fuhrmann, Co-CEO and CFO, will present the results in an earnings call today at 15:00 CET / 09:00 ET, followed by a Q&A session. The earnings call can be accessed live via webcast and questions can be submitted in writing. A recording will be available on demand at the Company's website after the live event has concluded.
The Q1 2024 report and presentation materials are attached to this release and available on the Company’s website: https://www.mpc-container.com/investors/
The webcast can be accessed through the following link: https://channel.royalcast.com/landingpage/hegnarmedia/20240528_1/
For more information, contact:
ir@mpc-container.com
About MPC Container Ships
MPC Container Ships ASA (ticker code "MPCC") is a leading container tonnage provider focusing on small to mid-size container ships. Its main activity is to own and operate a portfolio of container ships serving intra-regional trade lanes on fixed-rate charters. The Company is registered and has its business office in Oslo, Norway. For more information, please visit www.mpc-container.com.
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Forward-looking statements:
This announcement includes forward-looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company's plans, strategies, business prospects, changes and trends in its business, the markets in which it operates and its restructuring efforts. These statements are made based upon management's current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, which speak only as of the date of this news release. Consequently, no forward-looking statement can be guaranteed. When considering these forward-looking statements, you should keep in mind the risks described from time to time in the Company's regulatory filings and periodical reporting. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. Further, the Company cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement.